MARKETS

WMCR bounces Xstrata bid

WMC Resources has knocked back a $7.4 billion takeover bid from diversified Swiss miner Xstrata, claiming the $6.35-a-share offer did not recognise the value of its assets.

Rebecca Keenan
WMCR bounces Xstrata bid

Trading in the Australian nickel, copper and uranium producer's shares has been halted after they last fetched $5.13.

The board of WMCR said it was willing to have further discussions with Xstrata and any material improvement in the bid would be considered.

Rumours regarding the takeover circulated last night, coinciding with an analyst tour of WMCR's Olympic Dam copper-uranium-gold operations in South Australia.

Chief executive Andrew Michelmore and executive general manager Seamus French addressed the 40-strong tour on Monday and an overview of the Mt Keith and Leinster operations was presented yesterday.

Today the company will present on the Kalgoorlie nickel smelter and Kwinana nickel refinery ahead of presentations by executive general manager of nickel Alan Dundas focusing on the potential for developing the nickel business.

MiningNews.net understands Dundas has not yet appeared, adding to the plausibility of a possible nickel expansion announcement.

The Sydney Morning Herald quoted UBS analyst Glyn Lawcock as saying any possible expansion had not been valued by the market.

He also said the stock could be worth as much as $5.99 to any possible suitor.

UBS is acting as corporate advisor to WMC and was today unavailable for comment.

WMCR is the third largest producer of nickel and operates two nickel mines, a smelter and refinery in Western Australia. It is also a significant producer of copper and uranium following the recent expansion at Olympic Dam.

After reporting a sound September quarter brokerage UBS placed a neutral rating on the stock at a target price of $5.35. It said the 2005 production guidance was below its expectations, in particular nickel forecasts of 65,000 tonnes, down from 70,000t.

MiningNews.net

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions

editions

Mining Magazine Intelligence Exploration Report 2023 (feat. Opaxe data)

A comprehensive review of current exploration rates, trending exploration technologies, a ranking of top drill intercepts and a catalogue of 2022 Initial Resource Estimates and recent discovery successes.